Benefits of Contract Management in Procurement

Thinking Machine resources for Spend Analytics in Procurement, Contract lifecycle management and Automated contract management software

Posts by Richard Martin:

A Complete Guide to Procurement Analytics

A Complete Guide to Procurement Analytics

Resilient supply chains and processes are more critical than ever. But how can your procurement department put this into practice? 

One of the best ways to improve processes is to invest in the power of data with procurement analytics. Many chief procurement officers (CPOs) do not have the technology to leverage data. A study found that only 10 to 20 percent of procurement data is used to drive decision-making on average.

The good news is that there is a solution. Data analytics in procurement can help you make the most of data to inform your decisions. Keep reading this procurement analytics guide to learn more. 

Future of Procurement In The Digital Age

Future of Procurement In The Digital Age

We have reached a point where technology innovation has enabled an advanced new approach to procurement.

This has come at a crucial moment for enterprise companies, with organisations now routinely spending more money on technology services than on goods.

Massive complexity, poor data quality, and ineffective cataloging of contract and invoice information is causing companies to spend up to 30% too much on their services.

In this article, we will highlight the five key trends that are enabling a new era of intelligent procurement, from master data management (MDM) to knowledge models.

When leveraged together, these five capabilities will enable enterprise businesses to prioritize both value and service-levels intelligently and in real-time. 

7 Common Procurement Challenges and How to Manage Them

7 Common Procurement Challenges and How to Manage Them

Procurement has been at the heart of a company's success since the Egyptians in 3000 BC. However, the complex nature of managing procurement means it is not without challenges. 

Business procurement departments have a variety of different responsibilities. Managing procurement involves everything from contracts to supplier relationships. It means it is a dynamic role that has to adapt to new challenges.

Over the past year, companies have had to find even more value from disruption and uncertainty. However, advances in digital technologies have helped speed up procurement transformation. Procurement technologies are becoming more essential than ever to manage procurement challenges and unlock digital procurement opportunities.

How Spend Analysis Can Help Your Telecom Spend Management

How Spend Analysis Can Help Your Telecom Spend Management

Did you know that global technology spending had a four percent increase even amid the pandemic?

These numbers should not surprise you, especially since almost all businesses rely on technology and telecom to operate most of their functions.

Unfortunately, about 20 percent of the amount that companies spend on telecom is an unnecessary expense.

For this reason, spend analysis and telecom spend management are no longer luxuries but necessities for procurement teams.

This is because the solution to the overspent money in telecom is not just about cost reduction but also to monitor, control and optimize contract value with current suppliers.

Read on for more information on spend analysis and telecom spend management and how to gain more control and visibility on your telecom expenses.

Why You Need Spend Management Analytics in Digital Procurement

Why You Need Spend Management Analytics in Digital Procurement

How do you reduce procurement costs, improve efficiency, and track and control workflows?

The answer: Spend management

Over the years, spend management has evolved into a continuous, comprehensive approach. This goes a long way to keeping your business in check and improving your bottom line.

Since Covid-19 first emerged, procurement organisations have faced a barrage of new challenges. From overcapacity in many segments to supply chain demand.

This begs the question: Can spend management analytics provide the solution?

Let’s find out...

What Is the Role of Contract Value Intelligence in Spending Analysis?

What Is the Role of Contract Value Intelligence in Spending Analysis?

Understanding what truly constitutes contract value intelligence (CVI) is a crucial starting point for strategic cost management, expense management and enterprise spending analysis.

Telecom or technology contract value can be determined by the quality of the service in relation to your overall technology and telecoms spend, which you must be aware of to determine whether you are using the best plans for your business and if the value of your spend is fully optimized.

For example, if you pay for 100GB of data and unlimited calls but only use a fraction of it, there may well be a cheaper option available.

Failure to identify spend optimization opportunities across thousands of plans routinely results in massive overspending, which impacts enterprises globally by more than $800bn per year.

6 Category Management Strategies To Optimize Telecom Spend

6 Category Management Strategies To Optimize Telecom Spend

Factors such as bundling services and keeping copies of contracts have their roles to play in reducing telecommunications costs, but many organisations are still failing to investigate a range of unnecessary hidden expenses, and the complexity of telecom category management for enterprise procurement teams continues to increase.

Whether your organisation is paying for disconnected services or suffering from internal usage abuses, the six cost reduction methods listed in this article will help to reduce telecoms costs, improve total contract lifecycle value and optimise technology spend.

Despite the difficulties associated with telecom cost management, we will also look at the practical solutions to unlocking significant savings on your technology and telecom spend.

To truly optimise this process and maximise reductions, working with Thinking Machine Systems automates the investigation and visualisation of data as well as simplifying strategic recommendations which are quickly actionable.

Category Management Analytics drives Business Digital Transformation.

Category Management Analytics drives Business Digital Transformation.

Imagine this: your team has found itself over budget after a challenging year of technology migrations and changing suppliers. You and your team need to find where the problems lie but no-one has enough spending analytics associated to your contract lifecycle management to fully understand the actual services being delivered within your technology and telecom supplier contracts in order to decipher the mess of documents and clearly articulate what your additional value and future cost reduction recommendation could be extracted from your suppliers. 

You might have experienced this exact scenario yourself recently. It’s a common experience that has plenty of advice, from contract lifecycle management tips of how to find the most useful information through to hiring an outside cost optimisation consultant to do the work for you. 

The thing is, manual approaches to this problem are prone to human-error, and even for the perfect human investigator, there’s a high chance that not every issue is found. 

Technology and telecom contracts cover a huge number of different services, which can be configured in different ways, and for every different configuration carries different contractual terms and pricing considerations. 

We explore the challenges to accurately deciphering technology contracts against their invoices, and how category management analytic solutions can handle all of the contractual landscape for that category and simplify the process for your procurement teams.